Bush Administration Calls For Review Of China Trade

By James A. Morrissey, Washington Correspondent

The Bush administration has sent Congress a top-to-bottom Chinese trade policy review that calls
for additional staffing and some new initiatives, but no specific recommendations for actions to
slow the growth of Chinese imports.

In the report, titled “US-China Trade Relations: Entering a New Phase of Greater Enforcement
and Accountability,” the administration said “the time has come to readjust our trade policy with
respect to China.” In releasing the report, US Trade Representative Rob Portman said “As a mature
trading partner, China should be held accountable for its actions and required to live up to its
responsibilities, including opening markets and enforcing intellectual property rights.” Portman
said the United States would “use all options available to meet this challenge.” The report does
not recommend any legislation or cite examples of how Chinese import growth can be slowed down.

The report, which is larded with strong rhetoric seeks to develop a number of new mechanisms,
in consultation with Congress and other stakeholders, to achieve goals that would result in better
balance in US trade with China. These initiatives include creating a “China Enforcement Task Force
in the USTR office and additional staffing in the US government’s Beijing offices. It also calls
for better inter-agency cooperation within the executive branch and “regular coordination” with
Congress on designing and implementing an effective China policy.

When asked at a news conference about any new legislative initiatives, Portman said he is not
asking for any specific piece of legislation, but he noted there currently are a number of
proposals in Congress. He said he hopes the report will provide Congress with information that will
be useful in helping it address Chinese trade issues. While he did not mention any timetable, he
said he expects Congress to act at some point.

While he has not yet received any reaction from China, Portman expressed the hope China would
receive the report as “an objective, thorough analysis.”